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AP® Macroeconomics

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Moderate

Sticky Wages

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Which of the following is the BEST example of the term "Sticky Wages">

A

Someone gets fired for using illegal drugs on the job.

B

A hard worker gets a raise when the boss recognizes the productivity of the worker.

C

The average hourly pay does not decrease during a recession.

D

Pay for workers falls proportionately whenever Aggregate Demand decreases.

E

Whenever wages equal fringe benefits.